Here's Why NXP Semiconductors (NXPI) Gained But Lagged the Market Today
In the latest trading session, NXP Semiconductors (NXPI) closed at $229.38, marking a +0.02% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.59%. On the other hand, the Dow registered a gain of 0.68%, and the technology-centric Nasdaq increased by 0.66%.
Coming into today, shares of the chipmaker had gained 12.78% in the past month. In that same time, the Computer and Technology sector gained 4.11%, while the S&P 500 gained 5.16%.
Investors will be eagerly watching for the performance of NXP Semiconductors in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.64, showcasing a 2.41% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $3.4 billion, indicating a 2.52% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $13.95 per share and revenue of $13.25 billion. These totals would mark changes of -11.26% and +0.34%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for NXP Semiconductors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.4% higher. NXP Semiconductors is currently a Zacks Rank #3 (Hold).
Digging into valuation, NXP Semiconductors currently has a Forward P/E ratio of 16.44. This expresses a discount compared to the average Forward P/E of 27.91 of its industry.
We can additionally observe that NXPI currently boasts a PEG ratio of 0.99. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. NXPI's industry had an average PEG ratio of 3.89 as of yesterday's close.
The Semiconductor - Analog and Mixed industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 206, this industry ranks in the bottom 19% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report
